All Forum Posts by: Torrell Palmason

@Michelle Martin

Unfortunately, it "is restricted to one-unit dwellings"

Best of Luck!

If you are going through Fannie/Freddie there is the 10 financed property rule. However from the lending side there are ways around that rule through Non-QM and other strategies. Local gov will have stipulations on how you operate but shouldn't dictate lending side.

If you have any other questions feel free to reach out.

Best of Luck!

Biggest thing to focus on is your numbers. If the numbers work at the current rates things can go up or down,  if your numbers are good, there shouldn't any concern.

If you plan on flipping, BRRRR, or even turn key get your numbers lined up. The numbers will depend on which strategy you use but figure out you rehab or touch up costs, your ARV, Market rents, closing costs and your carrying costs.

Take the time do the math, get an experienced loan officer on your team and have them check the numbers. 

Best of Luck!

What are the rents you're getting for the other 3 units? Nice job on getting seller paid closing. That's the same thing I was wanting to do with my VA but my lady put a hard stop on that.

Best of Luck!

Hey @Jon Kelly,

I don't know where you are getting your HELOC's but my starting rate on the HELOC I have is 3.49%. This is an adjustable rate so I expect it to change but I am not not mad at it :) Cashout for me right now would be a much higher rate with a much higher payment whereas HELOC is Interest only for the first 10 years. I only pay on what I use, I find this much more favorable towards me.

Best of Luck!

Hey @Alex Song, I agree with @Tim Johnson that a cashout may not be a viable option for you at this time. However, with a HELOC you can go up to 90%-100% CLTV which can give you some more leeway. At a CLTV of 90%-100% be aware rates will be higher but they are interest only during the draw period.

If you are curious on Second homes then I had just written up this post yesterday "Second homes are restricted to 1 unit properties, must be suitable for year round occupancy (the way I interpret that is STR is acceptable as you can schedule yourself to stay whenever), Must not be a rental property (LTR is out of bounds), you must occupy the property for 14 days out of the 1st year, and cannot be managed by a property manager. This leaves a lot of opportunity out there for you to get into a great market."

Best of Luck!

Hey Scott, yes you can get a second home even if you don't have a current primary.  

Second homes are restricted to 1 unit properties, must be suitable for year round occupancy (the way I interpret that is STR is acceptable as you can schedule yourself to stay whenever), Must not be a rental property (LTR is out of bounds), you must occupy the property for 14 days out of the 1st year, and cannot be managed by a property manager. This leaves a lot of opportunity out there for you to get into a great market.

Best of Luck!

Hey @Jose Trejo

As stated by Malcomb to access your Equity I would call a local bank, personally I just went through OBEE Credit Union they were quick and and terms were great.

On the second if you want to place your home in a LLC this will depend on where you are at with your current loan and how you want to refinance. If you are with a Fannie Mae loan then they have provision that allows you to transfer to a LLC without triggering the Due on Sale Clause. If you are planning on refinancing I would wait until after you refinance into a Fannie loan otherwise you will have to transfer back into your name to do the loan then back into the LLC.

Other options are Non-QM loans but if you qualify for conventional I would stick with them since Non-QM generally have higher rates.

Best of Luck!

If you are wanting to Househack a 2-4 unit I would recommend sticking with FHA as it has a low down payment of 3.5% for 1-4 units. If you are just wanting a 1 unit that you rent bedrooms out of, then Freddie Mac Home Possible is a good option at 3% down plus it is a conventional so you can get the Mortgage insurance removed in a couple years without refinancing.

A DSCR is a investment loan so owner occupied is not allowed. Also the rates for these loans since they are Non-QM are higher than your typical Owner occupied loan. These are a great option if you aren't showing enough income for a conventional loan but the units put off enough rents to cover 100%-115% of the mortgage. New investors can be given these loans same as seasoned investors as long as the numbers add up. This loans will also come with more reserve requirements than a conventional loan. If you are wanting this type of loan I would recommend speaking with a Loan Officer so they can guide you through the process and help with analyzing properties.

Best of Luck!

Hey Sean, I would highly recommend a HELOC with a Local Credit Union. If you use the Cashout it will raise your rates not only for the Cashout with is higher than a rate and term, but also because todays rates are higher than 3.6%.

With a HELOC you can pull out the equity on your home like a credit card and only being paying on what you have used. A HELOC will not affect your current mortgage and as you payoff what you have used you can keep reusing the line of credit. If at the end of the 10 year draw period you want to keep using your HELOC you can refinance the HELOC and gain access to the new equity you have gained in your home at that time increasing the amount of your HELOC.

Best of Luck!